AIM and Media Release
25 November 2022
BASE RESOURCES
LIMITED
Chair’s Address to the Annual General Meeting
Friday, 25 November 2022,
11.00am (AWST)
African mineral sands producer, Base Resources Limited
(ASX & AIM: BSE) (Base Resources or the Company)
advises that the following address was delivered by Base Resources’
Chair at the Company’s Annual General Meeting held today at
11.00 am (Perth time) in Perth, Western
Australia and online via the Lumi software platform.
Management also delivered a presentation at the Annual General
Meeting. A copy of that presentation is available from the
Company's website: www.baseresources.com.au.
Chair’s AGM Address
Ladies and gentlemen,
The 2022 financial year saw the continuation of the buoyant
mineral sands markets that characterised the last few years.
Kwale Operations was once again metronomic in its reliability,
achieving production guidance and meeting customer shipping
schedules consistently despite COVID-induced challenges and some
unplanned stoppages. Costs were managed tightly, despite
inflationary headwinds, contributing to record financial
outcomes. The team maintained its focus on safety, health and
wellbeing, though the first lost time injury since 2014 was
recorded in the year.
With consistent operational performance and a robust pricing
environment, the Group generated record EBITDA of US$158.7 million and net profit after tax of
US$80.7 million. Strong
underlying cashflow enabled the Company to end the financial year
with US$55.4 million net cash and the
Board determined a final dividend of AUD 3.0
cents per share, unfranked, which was paid in late
September. Together with the AUD 3.0
cents paid in March 2022, this
brought the total distributions to shareholders determined in
respect of the 2022 financial year to AUD 6.0 cents per share, unfranked, totalling
US$48.8 million.
The Company remains very focused on extending Kwale Operations’
mine life to maximise value for all stakeholders. The
addition of a further two years taking production to the end of
2024 through the Kwale South Dune extension and the Bumamani
Project were significant steps and ones that provide the Company
with some additional time to pursue further extensions. With
exploration tenure in place, the near-mine Kwale East sector
represents the most immediate extensional opportunity and we were
pleased to commence drilling in that area earlier this month.
Slightly further afield, and a longer dated opportunity,
exploration on the prospective geological feature that extends from
the Kuranze region of Kenya across
the border into Tanzania is
underway, albeit limited at present to the Tanzanian side.
Following an initial reconnaissance program, we recently completed
a more extensive 3,000m drill
program. In Kenya, the
government-imposed industry-wide moratorium on issuance of mineral
rights, which has been in place since 2019, continues to impede the
Company’s ability to undertake any exploration in the Kuranze
region. Following recent general elections, and the
appointment of a new Minister, we are hopeful that the issuance of
prospecting licences will resume soon.
The Toliara Project in Madagascar continues to represent a
significant and attractive growth opportunity for the
Company. Following a major update and increase to the Ranobe
Ore Reserves estimate, the Toliara Project definitive feasibility
study was updated in October last year, significantly increasing
both the scale and economic value of the Project. The team is
now assessing the commercial potential of the monazite
mineralisation in the deposit to seek to further add significant
value to the project.
We continue to progress discussions with the Government of
Madagascar in relation to the
fiscal terms applicable to the project and the lifting of the
on-ground suspension. Tim will provide more colour on this in
his presentation.
Sustainability has always been a key component of the Base
Resources business model and we were pleased to recently publish
the Company’s inaugural sustainability report. I would
encourage all shareholders to read this report, and also to review
the associated Sustainability Databook, to see how we go about
demonstrating that sustainable mining of essential resources can be
a reality, whilst generating requisite shareholder returns and
improving the environmental, social and economic outcomes for all
stakeholders.
Since the 2021 AGM, we have seen some change in the composition
of your Board. I would like to thank Colin Bwye, Executive Director
Operations and Development, who retired after providing valuable
leadership while on the Board and as a key member of our senior
management team since 2010, and also Janine
Herzig who resigned as a Non-Executive Director during the
year. We intend to reshape the Board further in the coming
months as part of our approach to both renewal and ensuring the
right mix of skills for the coming years’ challenges.
Finally, on behalf of the Board, I’d like to extend my sincere
thanks and appreciation to management and all staff of the Base
Resources Group, both for “living the Base Way” and for another
highly commendable year of achievement.
ENDS.
For further information contact:
James Fuller, Manager Communications
and Investor Relations |
UK Media Relations |
Base Resources |
Tavistock Communications |
Tel: +61 8 9413 7426 |
Jos Simson and Gareth Tredway |
Mobile: +61 488 093 763 |
Tel: +44 207 920 3150 |
Email:
jfuller@baseresources.com.au |
|
This release has been authorised by Base Resources’ Disclosure
Committee.
About Base Resources
Base Resources is an Australian based, African focused, mineral
sands producer and developer with a track record of project
delivery and operational performance. The company operates
the established Kwale Operations in Kenya and is developing the Toliara Project in
Madagascar. Base Resources is an ASX and AIM listed
company. Further details about Base Resources are available
at www.baseresources.com.au
PRINCIPAL & REGISTERED
OFFICE
Level 3, 46 Colin Street
West Perth, Western Australia, 6005
Email: info@baseresources.com.au
Phone: +61 8 9413 7400
Fax: +61 8 9322 8912
NOMINATED ADVISOR
RFC Ambrian Limited
Stephen Allen
Phone: +61 8 9480 2500
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Berenberg
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Phone: +44 20 3207 7800
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Phone: +44 20 7523 8000